TELUS Mobility

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TELUS Mobility

• George Cope
• President CEO, TELUS Mobility
• Scotia Capital
• Telecom Cable 2003 Conference
• 6 November 2002

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Forward-Looking Legal Disclaimer
This presentation contains forward-looking
statements about expected future events and
financial and operating results that are subject
to risks and uncertainties. TELUS actual
results, performance, or achievement could differ
materially from those expressed or implied by
such statements. For additional information on
potential risk factors, see TELUS 2001 Annual
Information Form, and other filings with
securities commissions in Canada and the United
States. TELUS disclaims any intention or
obligation to update or revise any
forward-looking statements, whether as a result
of new information, future events or
otherwise. All dollars in C unless otherwise
specified
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About TELUS
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About TELUS

• Leading Canadian pure-play, facilities based,
  full-service telecom provider
• Second largest Canadian telco
• Executing national growth strategy focused on
  data, IP wireless from position of financial
  strength
• 2002E Revenues 7.0B
• EBITDA 2.5B
• Operating segments Communications -
  wireline Mobility - wireless
• Enterprise value 13B (equity 5B)

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TELUSImproved financial position

• TELUS Communications Execution on operational
  efficiency ahead of schedule
• TELUS Mobility strong results
• Capex has been significantly reduced as planned
• Free and Net Cash Flow positive in 3Q-02 2003
• Financial strength demonstrated by debt
  repurchase and equity issuance
• Debt and leverage reduced / credit enhanced
• Liquidity enhanced in 3Q-02 to in excess of 1B

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TELUSConsolidated revenue profile
12ME Q3-02
12ME Q3-001
TELUS Mobility
TELUS Mobility
LD
LD
Wireless
15
22
27
Wireless
17
Local Voice
Local Voice
Data
Data
33
13
42
18
Other
Other
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TELUS Communications
TELUS Communications
7.1B
5.7B
1 Includes Q4-99 Data Other revenues that have
not been reclassified consistent with 2000-02
results
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About TELUS Communications

• ILEC Full service in W. Canada and E. Québec
• Non-ILEC Data IP for business in C. Canada
• Revenue (2002E) approx. 5B
• EBITDA (2002E) approx. 2B
• POPs covered 7.5M
• Network access lines 4.9M
• Local/LD market share 97 / 79
• Total Internet subscribers 783K (367K ADSL)
• Fibre IP backbone national
• Strategic relationship Verizon

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TELUS CommunicationsIncreasing share of ADSL net
additions
9ME Q3-021
9ME Q3-011
TELUS
26
TELUS
62
Shaw
Shaw
74
38
1 Q2-Q4 2001 2002 for Shaw, and Q1-Q3 2001
2002 for TELUS.
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TELUS Communications Operational Efficiency
Program (OEP)

• July 02 Today
• Employee reduction plans1 6,000 6,500
• Annualized cost savings 400 to 500M 540M
• Sample of OEP results to date
• Reduced employee positions
• 2,700 YTD Sep 02 / 1,700 in Q3
• 4,000 YTD Oct 02
• 33 of 33 retail stores closed
• 11 of 47 contact centres closed/consolidated
• Cost savings expected in 02 of 55M 350M in
  03

1 Reductions 2002-03. Including 800 OEP related
reductions in 2001, reductions to total 7,300.
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TELUS Mobility
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About TELUS Mobility

• Leading national wireless provider
• Subscribers 2.9M
• Revenue (2002E) approx. 2B
• EBITDA (2002E) approx. 490M
• CDMA footprint coast to coast 1X
• iDEN network only one in Canada
• Spectrum position best in Canada
• Licensed POPs Cdn. population (31.4M)
• Network coverage 25M (80) roaming
• Strategic relationships Verizon Wireless Nextel

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Subscribers
Net additions ? 20 in Q3-02 ? 12 YTD
94K
20
78K
Q3-02
Q3-01
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Subscribers Strong postpaid mix
TELUS Mobility has industry leading postpaid mix
Prepaid 16
Postpaid 84
2.9M Subscribers
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SubscribersWireless penetration growth
2001
2005E
2002E
34
50-55
39
10.7M subs
16-17M subs
12M subs
4.5M net adds expected over next 3 yrs
Source Industry analysts
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Churn management Efforts to improve churn

• Enhanced retention focus
• 80M budgeted for 02
• Coverage expansion
• Roaming/resale agreements
• Contracts
• Bundled services
• More TELUS Mobility stores

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Churn managementStrong improvement
Monthly churn improved 48 bps YoY in Q3-02
2.17
1.69
Q3-02
Q3-01
Monthly Churn ()
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ChurnBelow industry average
Industry leading monthly churn rate of 1.69 in
Q3-02
2.7
2.1
1.8
Canadian Average1
TELUS Mobility
U.S. Average
Monthly Churn () - YTD Q3
1 Microcell YTD 2Q-02
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Cost of acquisition Driving lower

• Lower prepaid commission
• Subsidies decreasing - cost of phones ?
• 1X phones NOT more expensive for TELUS
• Retail stores - lower COA
• Leverage brand

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Cost of acquisition
Significant improvement in COA excluding
retention migration
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449
391
Q3-02
Q3-01
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ARPU Drivers

• Mike footprint expansion - West
• Roaming/resale agreements - East
• Expanded distribution
• Per minute billing
• Verizons preferred Canadian roaming partner
• Expanding data offering
• 1X launch
• M-commerce

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ARPU
ARPU has improved throughout 2002
58
55
52
Q3-02
Q1-02
Q2-02
Average Revenue Per Unit (/month)
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ARPU
Industry leader with gt20 premium to closest
competitor
58
47
47
411
TELUS Mobility
BCE Wireless
Rogers ATT
Microcell
Average Revenue Per Unit (/month) - Q3-02

• 1 Microcell Q2-02.
• Source Company reports

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EBITDA margin improvement Outstanding Q3-02
performance
Q3-02 EBITDA YoY growth of 40
165M
3Q EBITDA Margin
31
118M
24
49M
12
Q3-01
Q3-02
Q3-00
Wireless EBITDA ()
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EBITDA margin improvementExpect full year
growth of 38
35 EBITDA growth YTD in 3Q-02
C490M
2002E
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EBITDA Margin
C356M
406M YTD
20
C173M
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2001
2002
2000
Wireless EBITDA ()
25
Capital efficiency
Significant YoY improvement in capital efficiency
184M
Capex as of revenue
38
97M
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Q3-02
Q3-01
Wireless Capex ()
26
Capital efficiency Coverage before
Roaming/Resale Agreements
27
Capital efficiency Coverage after Roaming/Resale
Agreements
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CapexIncreasing capital efficiency
644M
560M
500M
lt500M
lt20 of revenue
500M
20011
2002
2003
2004
Capitalizing on technology efficiencies
1 Excluding spectrum acquisitions
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How does TELUS Mobility measure up?

• TELUS Cdn. US UK
• Mobility Avg Avg Avg
• ARPU ()1 55 46 53 32
• Churn ( - monthly) 1 1.8
  2.1 2.7 2.1
• Lifetime revenue () 1 3,000 2,200
  2,000 1,500
• EBITDA margin () 1 27
  22 30 27
• Market penetration () 11 37 49 81
• No. of carriers in market 3-4 3-4 6-8
  4
• Penetration opp / carrier () 2 1.2
  1.2 0.7 1.0
• Capex efficiency () 3 25
  27 29 n.a.
• EBITDA growth rate () 4 38 n.a. 33
  n.a.

TELUS Mobility is a premium wireless provider
operating in attractive Canadian wireless market
1 Currency C for Cdn Operators, US for US UK
carriers. Operating statistics based on 9ME
Sep-02 except UK 2 Projected wireless market
penetration gain for 02 divided by number of
carriers in market 3 Projected 02 capex as a
of forecast 02 revenue 4 Projected 02 EBITDA
growth over 01. TELUS EBITDA growth includes
favourable 21M tax decision. (32 if excluded)
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YTD Performance on track
Q3 YTD 02
Updated 2002 goals

• Revenue - approx 2B (? fr. 1.95-2.0B)
  1,467M (? 10)
• Net additions of 425 - 450K 287K (? 12)
• Manage churn at lt2.0 1.8 (? 18 pts)
• EBITDA 490M (? fr. 450-470M) 406M (? 35)
• Capex discipline 500M(? fr. 560M) 335M (?
  58)
• Introduce new data products and
  services 1X/SMS/
• Implement roaming/resale agreements
  largely complete

YTD results reflect consistent focus on
profitable subscriber growth
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Why invest in TELUS?

• Resilient cash flow from ILEC
• 2002E EBITDA 2B
• Operational Efficiency Program
• Savings of 350M in 2003 540M annually
• Strong Canadian wireless fundamentals
• Leading wireless EBITDA growth
• 2002E EBITDA 490M (? 38)
• TELUS free cash flow positive in 2H-02 2003

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Questions?